According to TMZ, Katy Perry's deal with a British hair care company was not renewed because market research supposedly showed them she's not as popular in Europe as she used to be. (!)

Katy reportedly had a $4.5 million written contract to promoted "ghd" (good hair day) for two years, starting in 2011. Her agent claims she's owed $2 million more based on an oral agreement to extend the contract. But the company said there was no oral agreement, and they don't want to renew. In an interesting move, the company filed a suit asking the count to block Katy's team from filing their own lawsuit, since Katy & co. have reportedly been threatening to sue for $2 million.

Katy does have great hair, and she's one of the most popular superstars alive. Do you think she was really let go from declining popularity, or maybe they just wanted to save money and go with someone less famous and probably less expensive?